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Edited version of private advice
Authorisation Number: 1052144814337
Date of advice: 27 July 2023
Ruling
Subject: Inheritance - gift
Question
Does the money gifted to you by your family form part of your assessable income under section 6-5 of the Income Tax Assessment Act 1997?
Answer
No - the funds that are to be gifted to you by your parents do not have the features of ordinary income therefore are not considered assessable income.
This private ruling applies for the following periods:
Year ending 30 June 2024
Year ending 30 June 2025
The scheme commences on:
1 July 2023
Relevant facts and circumstances
You live in Country A on permanent residency.
You have full time work in Country A.
Your parents live in Country B.
Your parents have expressed a desire to distribute funds to you.
The funds are a gift from your parents, derived from the sale of their personal assets.
The funds are not a source of income.
You do not work for your parents.
You are going to transfer the funds into a bank account located in Country A in your name.
The funds will be transferred in multiple transactions.
Your parents will prepare an undertaking stating that the funds are gifted funds, derived from the sale of their assets.
The funds that relate to this ruling will be transferred to your nominated Country A bank account during the 20XX-20XX and 20XX-20XX income year.
You and your parents will provide accurate and genuine records of all transactions relating to these funds.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5